Corporate Governance

Corporate Governance in India

Governance is derived from the word Gubernare, which means to rule or steer. Due to various factors such as increasing size of corporate body, large number of shareholders and the impact on the well being societies, corporate governance has come to the forefront.

India follows the single tier board system which is simple with relatively dispersed share holding patterns.

Secretarial Practice

The internal governance includes all internal compliances and maintenance of records of the company.

Meetings on Constitution of the Board
Preparing of agenda for Board Meetings
Conducting meetings of Board of Directors, Annual General Meetings and Extra Ordinary General Meetings
Preparing minutes of the board meeting, committee meetings and annual general meeting.
Maintenance of Books and the Register
Obtaining disclosures from directors under section 299 and 274(1) (g) of the Act

Securities Compliance

The various types of shares and other securities which may be issued are:

Bonus issue
Preferential allotments
Private Placements
Issue of Sweat Equity Shares
Issue of shares under ESOP
Issue of shares at discount
Issue of shares at premium
Issue and conversion of share warrants
Issue, redemption and conversion of preference shares
Issue and conversion of bonds
Issue and conversion of debentures

Statutory Compliance

The activities carried out by companies in India have to be in compliance with statutory stipulations such as the Companies Act, SEBI etc .Failure to meet these requirements may result in the issue of a show cause notice to the company and its directors.